The cloud native operating model is changing the way businesses operate and compete globally. It provides flexibility and speed, aligning with business strategies to create a unified and agile infrastructure. As businesses grow and evolve, cloud native platforms offer the scalability needed to manage fluctuating workloads, allowing them to adjust resources in response to changing demands.

Kyndryl, the world’s largest IT infrastructure services provider, recently acquired Skytap, a privately held Seattle company that helps organizations move operations to the cloud. This acquisition will expand Kyndryl’s hybrid cloud solutions portfolio, providing customers with the flexibility they need to scale their workloads up and down within Azure, using its modern features for surrounding applications.

Dave Simpson, Global Cloud Practice Leader at Kyndryl, said that the expanded portfolio will offer a more integrated service offering, with Skytap’s unique IP enabling an easier transition to the cloud.

“Kyndryl and Skytap are a natural fit, and we are excited to join forces,” said Brad Schick, CEO of Skytap. “Kyndryl’s industry-leading services are ready to lead businesses through cloud migration and modernization utilizing Skytap's capabilities for running complex workloads in supported hyperscaler environments.”

Here, Simpson talks about the synergies between the two companies, hyperscaler growth and the future of cloud at Kyndryl.

What was the business rationale behind the acquisition?

Simpson: This acquisition is about helping our customers modernize their IT environments. Many of our customers face challenges with unique technologies that do not easily migrate to public clouds. With Skytap, we can offer a seamless lift and shift of current applications into a Microsoft environment, using Azure's capabilities. This technology enables our customers to migrate, modernize and operate at their own pace with minimal change, which is a significant advantage in today's fast-paced technology landscape.

Kyndryl and Skytap are a natural fit, and we are excited to join forces. Kyndryl’s industry-leading services are ready to lead businesses through cloud migration and modernization utilizing Skytap's capabilities for running complex workloads in supported hyperscaler environments.

Brad Schick

CEO, Skytap

Let’s talk about Skytap in particular. What are some of its biggest benefits?

Simpson: Skytap’s unique relationship with Microsoft and its exclusive ability to move workloads into Azure datacenters were beneficial. Skytap’s integration with Microsoft allows for a seamless experience for our customers. Additionally, Skytap’s team brings a wealth of knowledge and expertise that complements Kyndryl's existing services, making it an ideal addition to Kyndryl’s hybrid cloud services portfolio.

With Skytap now part of Kyndryl, how will the Kyndryl-Microsoft partnership evolve?

Simpson: Skytap helps expand Kyndryl’s service offerings, allowing us to grow our business with Microsoft and assist customers with complex workload migrations. Kyndryl’s partnership with Microsoft will evolve to include a more comprehensive suite of services that uses both Kyndryl's and Microsoft's capabilities.

How does Skytap align with Kyndryl's hyperscaler strategy and momentum?

Simpson: Skytap enhances our capabilities in helping customers modernize and manage their hybrid cloud environments. It accelerates our growth in the hyperscaler space by providing additional flexibility and support for our customers’ diverse workloads. The purchase aligns with our hyperscaler strategy focused on deepening partnerships like that with Microsoft and providing top-tier services in the cloud ecosystem.

In what ways does Skytap’s technology complement Kyndryl's existing services?

Simpson: The acquisition will combine Skytap’s patented technologies at a global scale with Kyndryl’s expertise in helping customers use cloud native services. This will accelerate the adoption of advanced analytics, AI and development, security and operations (DevSecOps). This will help customers accelerate the modernization of their business-critical applications to Microsoft Azure.

What immediate changes can customers expect to see post-acquisition?

Simpson: Kyndryl customers will have access to a more comprehensive service offering, with the ability to use Skytap’s technology for an easier transition to the cloud.

The seamless integration of the Skytap platform with Kyndryl services accelerates the modernization of customers’ business-critical workloads, providing access to 200+ Cloud and AI services on Azure.

Dave Simpson

Global Cloud Practice Leader

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